Finding your account frozen by the Franchise Tax Board is alarming, but there is a set waiting period before the money leaves. Here is how long it is and how to use it.
The FTB Froze My Bank Account: How Long Until the Money Is Gone?
By Damian Gerry on LinkedIn (opens in a new tab), Founder
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When the FTB levies a bank account, the bank must hold the money for at least 10 business days after it receives the order before sending it to the FTB. That window is short, but it is real, and it is the best time to call.
The FTB calls a bank levy an Order to Withhold for Taxes (FTB 2900). For California income tax, the FTB says the order collects all available funds in the account, up to the balance you owe. It does not mention the exemptions that apply to its orders for court-ordered debt, so do not count on part of the balance being protected.
How the FTB bank levy compares with an IRS levy
If you owe both agencies, the timelines differ. Here is how the two bank levies line up.
| Question | FTB Order to Withhold | IRS bank levy |
|---|---|---|
| How long the bank holds the funds | At least 10 business days after receiving the order | 21 days |
| How much it can take | All available funds, up to the balance due | Funds in the account are held, then sent to the IRS |
| Fastest way to stop it | Pay in full, then call the number on the order | Pay in full, or show the levy causes an immediate economic hardship |
Ten business days is about two calendar weeks, so check the date the bank froze the account and count from there.
What to do before the money is sent
- Call the number on the order. The FTB asks you to have your bank's fax number ready before you call.
- Pay in full if you can. The FTB says this is the most effective way to stop a levy. After you pay, call the number on the order.
- Ask about financial hardship. If paying would cause a financial hardship, the FTB may modify the levy. Explain your situation on the call.
- Ask about a payment plan by phone. You cannot apply online while a bank levy is open, so call 800-689-4776 instead.
You do not need every answer before you call. The first call is your chance to explain your situation and ask what the FTB will accept.
If the levy came in error, for example because the balance was already paid, tell the FTB on that call. It will release a levy issued in error.
Payment plan rules for individuals (as of April 2026)
| Requirement | Detail |
|---|---|
| Balance | $25,000 or less |
| Time to pay | 60 months or less |
| Filing | All income tax returns filed for the past 5 years |
| Setup fee | $34, added to your balance |
| Processing | Up to 90 days; keep paying while you wait |
| Other conditions | The FTB may ask for a financial statement, and a tax lien may be a condition of the plan |
If the frozen account holds investments
California law treats brokerage and other financial assets differently from cash. The institution must sell the assets in a commercially reasonable way within 90 days of the order and send the proceeds within 5 days of the sale. If the account is worth more than the debt, you have 60 days after the order is served to tell the institution which assets to sell. Without instructions, it sells the most recently purchased assets first.
If the levy was a mistake
When the FTB agrees a levy was issued because of its own error, it can reimburse the bank charges you paid. You must ask in writing within 90 days of the notice date, explain that the error and the charges were caused by the FTB, and show you were not reimbursed elsewhere. The FTB says it responds within 30 days.
Where this fits
A bank levy is one part of FTB collection, and a lien may also be on file. Our guide to tax liens and levies in California explains how the two fit together for both the FTB and the IRS. If you would rather not make the call alone, here is how we help with wage garnishments and bank levies, starting with a free, confidential review.
Frequently Asked Questions
How long does an FTB bank levy hold last?
Under California Revenue and Taxation Code section 18670, a bank must send levied funds to the FTB no sooner than 10 business days after it receives the Order to Withhold. Use that time to call the number on the order.
Can I set up an FTB payment plan while my account is frozen?
You can ask, but not online. The FTB says you cannot apply online with an open bank levy, so call 800-689-4776. Individuals may qualify if they owe $25,000 or less, can pay within 60 months, and have filed the past 5 years of returns.
Sources: California R&TC 18670; FTB, Withholding orders; FTB, Help with withholding orders; FTB, Payment plans; IRS, Levy.
